Liu, Li Xian, Sun, Zhiyue, Xu, Kunpeng, and Chen, Chao (2024) AI-Driven Financial Analysis: Exploring ChatGPT’s Capabilities and Challenges. International Journal of Financial Studies, 12 (3). 60.

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Abstract

The transformative impact of AI technologies on the financial sector has been a topic of increasing interest. This study investigates ChatGPT’s applications in financial reasoning and analysis and evaluates ChatGPT-4o’s effectiveness and limitations in conducting both basic and complex financial analysis tasks. By designing a series of multi-step, advanced reasoning tasks and establishing task-specific evaluation metrics, we assessed ChatGPT-4o’s performance compared to human analysts. Results indicate that while ChatGPT-4o demonstrates proficiency in basic and some complex financial tasks, it struggles with deep analytical and critical thinking tasks, especially in specialized finance areas. This study underscores the need for meticulous task formulation and robust evaluation in AI financial applications. While ChatGPT enhances efficiency, integrating it with human expertise is crucial for effective decision-making. Our findings highlight both the potential and limitations of ChatGPT-4o in financial analysis, providing valuable insights for future AI integration in the finance sector.

Item ID:	83037
Item Type:	Article (Research - C1)
ISSN:	2227-7072
Copyright Information:	Copyright: © 2024 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Date Deposited:	01 Jul 2024 22:35
FoR Codes:	35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350202 Finance @ 60% 39 EDUCATION > 3901 Curriculum and pedagogy > 390102 Curriculum and pedagogy theory and development @ 20% 46 INFORMATION AND COMPUTING SCIENCES > 4602 Artificial intelligence > 460206 Knowledge representation and reasoning @ 20%
SEO Codes:	11 COMMERCIAL SERVICES AND TOURISM > 1102 Financial services > 110201 Finance services @ 60% 16 EDUCATION AND TRAINING > 1603 Teaching and curriculum > 160301 Assessment, development and evaluation of curriculum @ 20% 22 INFORMATION AND COMMUNICATION SERVICES > 2204 Information systems, technologies and services > 220403 Artificial intelligence @ 20%
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